The Dominican Association of Exchange Intermediaries (Adocchange) publicly requested the elimination of the administrative dispensation of the tax of the 0.0015% (1.5 per thousand) over the electronic transfers carried out by change agents.
Through a statement published in this medium, the entity expressed that this lien has a “significant impact” in the operations, competitiveness and sustainability of the exchange sector.
Among the consequences of this tax, Adocchange highlighted:
- Double taxation and disproportionate costs:
The application of this tax generates double taxationsince it must be paid both in the transfer of the purchase and in the sale of currencies.
- Loss of competitiveness compared to financial entities:
While financial entities are not subject to this tax, exchange agents must absorb or transfer this cost, limiting their ability to offer competitive rates.
- Promoting the use of cash:
This tax encourages the use of cash to the detriment of electronic means, which contradicts the transparency regulations of the Financial Action Task Force (FATF) and Law No. 155-17 on Money Laundering.
- Inflationary impact and on the national economy:
Adocchange alert that this tax would increase the operating costs of exchange agents, which could be passed on to clients and generate inflationary effects.
- Financial sustainability:
According to sustainability tests, the double tax impact could bankrupt exchange agents, since their margins would be completely absorbed.
The entity indicated that the administrative dispensation of the tax It does not constitute a privilege, but rather a necessary measure to guarantee tax equality with other entities in the financial system.
The entity highlighted the importance of the exchange sector, “where exchange agents represent 27.3% of the market and generate more than 4,200 jobs,” the statement emphasized.
In addition, he warned that eliminating said exemption would not generate a significant increase in tax collection, but it could weaken the sector.
Therefore, Adocchange requested the Treasuryto the Central Bank already General Directorate of Internal Taxes (DGII) maintain the administrative dispensation in force and open a constructive dialogue that allows guaranteeing the sustainability of the exchange sector.
